Comparative advantage is the ability, compared with another producer
A) to produce more of a product with the same resources.
B) to use fewer inputs to produce the same amount of a product.
C) to produce a higher-quality product with fewer resources.
D) to produce an additional unit of a product at lower opportunity cost.
Answer: D
Economics
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Monetary expansion causes the current account balance to increase in the short run. Discuss. Is the same the case for fiscal expansion?
What will be an ideal response?
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In the Keynesian model in the short run, what is likely to happen to employment after each of the following shocks?
(a) An increase in taxes (b) An increase in consumer spending generated by a reduced desire for saving (c) An increase in the money supply
Economics